A company issued 40,000 shares of par value ₹20 each. If the total dividend declared by the company is ₹84,000, then the rate of dividend paid by the company is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 10.5%
Total Number of shares = 40,000
Per value per share = 20
Total Dividend declared = 84,000
$\text{Rate of Dividend}=\left(\frac{\text{Total Dividend}}{\text{Total per value of shares}}×100\right)$
$=\left(\frac{84,000}{40,000×20}×100\right)$
$=10.5\%$